According the guide we configured BI embedded on a D365 1Box, Version 8.

Export enity store failed on Step 13

With the error:
Could not import package.
Warning SQL0: A project which specifies SQL Server 2016 as the target platform may experience compatibility issues with Microsoft Azure SQL Database v12.
Error SQL72014: .Net SqlClient Data Provider: Msg 45122, Level 16, State 1, Line 1 'Free Trial subscriptions can provision Basic, Standard S0 through S3 databases, up to 100 eDTU Basic or Standard elastic pools and DW100 through DW400 data warehouses'
Error SQL72045: Script execution error.  The executed script:
CREATE DATABASE [$(DatabaseName)] COLLATE SQL_Latin1_General_CP1_CI_AS
    (EDITION = 'Premium', SERVICE_OBJECTIVE = 'P1', MAXSIZE = 500 GB)

Means that, this service has to be licensed or is the dabase of SQL Server 2016 not compatible with the one on Azure?

Thanks for help.